Eurodollar University The Ridiculous Real story Behind the Tariff Deal
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May 13, 2025 Delays in tariffs are creating economic turbulence, especially for China. The misconception that temporary trade deals can resolve deeper issues is a key theme. The chaos surrounding the 2018 trade negotiations highlights how economic fundamentals often dictate outcomes. The podcast also reveals ongoing stagnation and recession trends in China and Japan since late 2018. Overall, it underscores how high tariffs from the US-China trade war are harming trade and growth, showing that new agreements alone won't fix systemic economic weaknesses.
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Trade Wars Didn't Break Economy
- Trade wars did not break the economy, so trade deals will not fix it.
- Economic weakness predates tariffs and remains the core issue affecting global markets.
Tariffs Stay Despite Delays
- Tariffs remain at historically high rates despite delays, impacting trade and economy.
- Delays only buy time for talks but don't remove tariffs themselves, maintaining economic pressure.
2018 Trade Deal Hope and Reality
- In May 2018, U.S. and China announced progress to avoid a trade war but imposed tariffs shortly after.
- Markets initially celebrated, but underlying economic weakness blunted any positive impact.